News Tech: With the government committing to become carbon neutral by 2070, it is imperative that the forthcoming Budget should focus on Environmental, Social and Governance (ESG) issues by providing tax and non-tax incentives needed to promote green economy, say experts. Indian businesses are undergoing significant changes amidst externalities such as climate change, finite resource availability, technology disruptions, emerging linked ecosystems and evolving stakeholder expectations.
Rishi Raj, his COO of Max Estates Ltd, said as a progressive real estate player his company aims to make a positive contribution to environmental protection. “Government interventions, such as tax rebates for meeting established environmental standards and certifications, environmental taxes for harmful environmental activities, and subsidies for the use of green products and services such as solar panels, electric vehicles and carbon-neutral materials.
According to PwC India, the budget should incorporate ESG parameters when structuring incentives, allocating resources and in the procurement processes, across sectors and institutions. It is also imperative to stimulate a more enabling ecosystem for ESG adoption, by promoting research and innovation. `’Additional budgetary allocation, viability based funding and institutional capacity building for cleantech, including carbon capture, utilisation and storage (CCUs), hydrogen, transportation, grid flexibility, afforestation and nature based solutions are critical for creating an enabling ecosystem for ESG adoption,” said PwC India. Finance Minister Nirmala Sitharaman is set to present the federal budget for the next fiscal year in parliament on Tuesday.
Policy change is likely to go away, and a long way to go to advance a robust sustainability agenda has become a necessity now,” he said. Asha Impact Founder Pramod Bhasin Sees Initiative to Free Up Institutional Capital for Sustainable Investments as Covid-19 Pandemic Continues to Stimulate Demand for These Investments said it’s a good thing. “This could enable his CSR investments in AIFs with an ESG focus and the development of a social stock exchange that facilitates the flow of capital to ESG-focused companies.